Agenda Item
R9 Discussion and Possible Action Including Adoption of a Resolution to Terminate BOS Agreement No. 24-085 (Master Tax Sharing Agreement) Between the County of Mendocino and the Cities of Ukiah, Willits, Fort Bragg, and Point Arena, due to Fiscal and Operational Impacts Arising from the First Proposed Annexation Under the Agreement; Authorize Notification of the Signatory Cities and Mendocino LAFCo; and Direction to Staff to Notify Mendocino Local Agency Formation Commission (LAFCO) that the County Anticipates the Proposed Annexation would Create a Substantial Risk to the Provision of Mandated Public Protection Services, Consistent with the Framework Established by Mendocino County Policy #13 (Annexations)
(Sponsors: Chair Norvell and Supervisor Cline)
Mendocino County Farm Bureau has participated in various meetings, workshops and
conversations with County and City elected officials, key staff about our concerns of the
impact of any proposed annexation, requesting that there is a complete analysis of the
impacts to both the County and the City before any application is submitted to LAFCO. We
have also suggested that the community at large be involved in the process to determine
which areas are appropriate for annexation.
Unfortunately, this hasn’t happened. It appears that there are disagreements as to what the
financial impact to the City and County would be if the current proposal were to be
approved. There needs to be clarity and agreement as to the facts between the City and
County before any proposal can move forward. Calculating the apportionment according
to the tax sharing agreement itself seems complicated, requiring a substantial amount of
labor to annually recalculate and manually enter into the County software systems. Until
there is accurate and concise information as to the impacts to the County and the City, it is
difficult to determine if the proposed annexation would be of benefit to both the City and
the County. The two entities must work together to develop an annexation plan that would
be of benefit to both City and County residents before anything moves forward.
We support the termination of the current MTSA and ask that the City and County work
together to develop a new agreement, including a new proposed annexation area which
reflects current circumstances that would be of benefit to all Mendocino County residents.
I cannot support this proposed action enough. Ukiah is in poor financial condition with a serious debt load but the County is also in dire straights financially and the terms of this tax sharing agreement and both versions of the proposed annexation of unincorporated County areas to the City of Ukiah will harm every resident of the County, including residents of Ukiah. Ukiah's leadership needs to find other means, perhaps actual economic development, to dig themselves out of their financial situation. Annexations can still go forward, they would just need to be analyzed on a case-by-case basis and any tax sharing terms negotiated as part of that process rather than in advance without all relevant information, as happened with the existing agreement.